Ethereum Layer 2 network Zircuit has surpassed $1 billion in pre-mainnet deposits within a mere six weeks since opening its doors to investors. 

The project has garnered 333,839 Ether, including ETH, liquid staking tokens (LSTs), and restaking tokens (LRTs), which, at current prices, amounts to approximately $1.11 billion, according to data from Dune Analytics.

Furthermore, the network holds over $45.9 million worth of stablecoins, primarily consisting of Ethena’s yield-bearing USDe token.

Zircuit Enables ETH Staking Derivatives

Zircuit initiated a points campaign on February 24, enabling users to stake ETH and Ether staking derivatives in exchange for Zircuit Points. 

These points not only offer potential eligibility for a future airdrop but also provide additional yield and points based on the deposited assets. 

Subsequently, on March 27, the project introduced its “Build to Earn” program, incentivizing developers to construct infrastructure, tools, and deploy decentralized applications (dApps) on Zircuit’s testnet, which was launched in November.

Extremely excited to announce that Ethena is joining @ZircuitL2‘s Build to Earn program to bring USDe to the ecosystem @ethena_labs will be natively integrating $USDe to Zircuit’s Mainnet on day 1.

Build alongside us:

1. Use the invite code below
2. Submit your project/idea… https://t.co/l4A4DUDxz1

— Seraphim (@MacroMate8) March 27, 2024

Notably, Zircuit allows users to withdraw their pre-mainnet deposits at any time.

The network operates as a hybrid rollup, combining zero-knowledge proofs with optimistic infrastructure. 

Additionally, Zircuit is fully compatible with the Ethereum Virtual Machine (EVM), the core smart contract engine of Ethereum. 

This compatibility allows existing applications supporting EVM execution to seamlessly migrate their code onto the Zircuit network.

Zircuit’s ability to deliver faster transactions without triggering exorbitant fees is achieved through compression techniques. 

The project has received grants from the Ethereum Foundation to facilitate its research on rollup compression and scaling cryptography, emphasizing its commitment to advancing Ethereum’s scalability and efficiency.

Ethereum Layer 2 Blast Sees Massive Growth

Zircuit’s rapid ascent in the pre-mainnet phase is reminiscent of Blast, another prominent Layer 2 network. 

Blast, developed by the team behind Blur, a leading NFT marketplace, became the third-largest Layer 2 network with a total value locked (TVL) surpassing $2 billion upon its mainnet launch on February 29. 

Blast attracted substantial deposits, even before releasing any code, by offering points in addition to the native rewards from supported yield-bearing assets. 

Within a week of launching a one-way deposit contract in mid-November, Blast amassed over $500 million in assets.

Ethereum’s Layer 2 ecosystem has experienced substantial expansion over the past year and a half, with a total value locked (TVL) surpassing $36.7 billion. 

In October last year, transaction activity on Layer 2 networks exceeded that of the Ethereum mainnet, with these networks now routinely processing five times as many transactions, according to L2beat.

As reported, Ethereum-based layer 2 network Arbitrum now has a market share of 49.17% among layer 2 networks, far surpassing number two on the list, Optimism Mainnet, with its 28.85% market share.

The network has also seen a consistent increase in its TVL at least since October last year, rising about 50% from $1.66 billion in October to the current value of $2.51 billion, data from DeFi tracking site DefiLlama showed.

The post Ethereum L2 Zircuit Surpasses $1 Billion in Pre-Mainnet Deposits in Just Six Weeks appeared first on Cryptonews.